The investment objective for the Aon ERF is to provide a return of at least 0.25% pa (after fees and taxes) above inflation over rolling three-year periods.
The trustee uses the Australian Prudential Regulation Authority's standard risk measure to rate the level of risk of this investment. The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The risk rating of the Aon ERF investment is:
- Risk band: 2
- Risk label: Low
- Estimated number of negative annual returns over any 20-year period: 0.5 to less than 1
The standard risk measure does not take into account all forms of investment risk. For example it does not detail what the size of a negative return could be or the likelihood of a positive return being less than you may require to meet your objectives. Nor does it take into account the impact of administration fees and tax on the likelihood of a negative return
Keeping the investment objective in mind, the
following asset allocation is used to invest the Aon ERF assets:
|Australian fixed interest
|International fixed interest
The Aon ERF was established in December 2003.
Net crediting rates for the past five years (after tax, investment
and management fees) and the five year compound net crediting rate
are given below. The net earning rate may not be the same as the
rate credited to members because of the effect of charges by the
Furthermore benefits are not guaranteed and the
value of a member’s investment may rise or fall. Please note
that past crediting rates are not an indicator of future net crediting
||Actual net crediting rate
|Compound average net crediting rate for 5 years to 30 June 2016
Labour standards and environmental, social or
ethical considerations are not taken into account by the trustee,
and are not, to the knowledge of the trustee taken into account
by investment managers used.
* Change to actual net crediting rate: This table contains an update to the actual net crediting rate for the year ended 30 June 2016 which was understated and disclosed as 1.8%. The correct crediting rate is 2.8%, which was correctly applied to member’s accounts. There is no financial impact to the members of the Aon Eligible Rollover fund (AERF).